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ELRCPartially AllowedCause No 36 of 2013· [2013] KEELRC 690 (KLR)

Kenya Plantation And Agricultural Workers’ Union v Carzan Flowers [2013] KEELRC 690 (KLR)

Industrial Court of Kenya
26 July 2013
3,520 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court ruled employers cannot mass-dismiss striking workers without individual notice and hearing; Carzan Flowers' collective dismissal of 400 workers was unfair.

What this practically means

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Executive summary

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The Kenya Plantation and Agricultural Workers' Union claimed on behalf of over 400 members of Carzan Flowers (KS & ST Farms) who were summarily dismissed on 15.04.2011 after taking part in an unprotected strike. The strike arose after the respondent unilaterally decided, on security grounds, to pay mid-month advance salaries through bank accounts instead of cash, leaving indebted grievants without subsistence after banks recovered loan repayments. The respondent issued three ultimatum notices on 15.04.2011 and then a general summary dismissal letter to all striking employees. The claimant relied on documents and pleadings; the respondent called four witnesses. The court framed four issues: the exclusivity of section 80 of the Labour Relations Act, 2007 for unprotected strikes; the availability of termination without due process under the Employment Act, 2007; the legality of collective disciplinary processes; and entitlement to remedies. Following its earlier decision in KPAWU v Roseto Flowers, the court held that section 80 is the exclusive path, requiring due process of notice and hearing before any punishment; the ultimatum principle is unavailable in Kenya's strike framework; the primary punishment is denial of pay for the strike period; and collective punishment is impermissible, each employee's case being considered on its unique merits. The termination was declared unfair and illegal. Reinstatement and anti-victimization orders were declined as stale and academic. The grievants were awarded days worked, pay in lieu of notice, 2010 annual leave, leave travelling allowance, gratuity, certificates of service and four months' salaries in lieu of the 12 months claimed, with the respondent's losses as a mitigating factor. The respondent was ordered to pay costs, with interest on unpaid dues at court rates.

Key legal issues

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01

Whether section 80 of the Labour Relations Act, 2007 is the exclusive path for dealing with unprotected strikes

Holding

Yes; the employer must apply due process of notice and hearing before imposing any punishment

Reasoning

Relying on its earlier decision in KPAWU v Roseto Flowers, the court held that the ultimatum principle does not apply to unprotected strikes. Section 80 does not prescribe a disciplinary procedure; such procedure is drawn from the Constitution (Articles 47 and 50(1)), the Employment Act, 2007 (including section 41 on notice and hearing) and lawful agreements between the parties. The primary punishment is denial of payment for the strike period, imposed only after due process establishing individual involvement.

p. 5
02

Whether termination is available in an unprotected strike absent due process under the Employment Act, 2007

Holding

No; the employer must comply with due process under the Act

Reasoning

The court held that dismissal by way of three notices and ultimatums, without individual notice and hearing, contravened the Constitution, the Labour Relations Act, 2007 and the Employment Act, 2007. Every employee's case must be considered on its unique merits; collective disciplinary process and collective punishment are impermissible.

p. 6
03

Whether the grievants' dismissal on 15.04.2011 was unfair and illegal

Holding

Yes; the termination was unfair and illegal and the claimant is entitled to the declaration sought

Reasoning

The respondent unilaterally changed payment of mid-month advance salaries from cash to bank transfer, exposing indebted grievants to loan recovery and leaving them without subsistence. The ensuing stoppage was treated through collective notices and a collective summary dismissal letter applying the ultimatum principle, contrary to the due process requirements the court identified.

p. 6
04

Whether reinstatement or an anti-victimization order should issue

Holding

Both declined

Reasoning

The court considered the considerable time elapsed since the 15.04.2011 dismissal and the many grievants involved, concluding that an order of reinstatement or re-engagement would occasion considerable and unreasonable difficulties; the offensive actions were stale. The anti-victimization prayer was moot as the grievants were outside the respondent's jurisdiction. The court should not act in vanity.

p. 6

Legal principles established

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  • Section 80 of the Labour Relations Act, 2007 is the exclusive path to be invoked by employers in dealing with employees involved in unprotected strikes, and due process of notice and hearing must precede any punishment
  • The ultimatum principle is unavailable in Kenya's strike legislative framework; collective imposition of punishment is not permitted as each employee's case must be considered on its unique merits
  • Under section 80 the primary punishment for participation in an unprotected strike is denial of payment for the strike period, imposed only after due process
  • Dismissal or termination on account of a strike should be invoked in extremely rare and obviously justified cases

Court orders

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  1. 1.A declaration that the termination of the grievants' employment was unfair and illegal
  2. 2.The respondent to issue the grievants' respective certificates of service by 1.10.2011
  3. 3.The respondent to pay grievants days worked and not paid
  4. 4.The respondent to pay grievants pay in lieu of the termination notice as per the CBA
  5. 5.The respondent to pay grievants 2010 annual leave due and not taken
  6. 6.The respondent to pay grievants appropriate leave travelling allowance as per the CBA
  7. 7.The respondent to pay grievants gratuity for each completed year of service and payment prorated for those who have not completed a year of service and as per the CBA
  8. 8.The respondent to pay grievants 4 months salaries at rate of monthly gross pay as at termination for unfair termination, taking into account mitigating and aggravating factors
  9. 9.The claimant to compute the dues and serve upon the respondent by 15.08.2013; the respondent to file and serve any objections by 30.08.2013 for confirmation
  10. 10.The respondent to pay the dues as confirmed by 1.10.2013 failing which interest payable at court rates from the date of judgment till full payment
  11. 11.The respondent to pay costs of the case

Authorities

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Legislation

  • Labour Relations Actsection 80(1), 80(2), 80(3)
  • Employment Act, 2007section 44 (including 44(4)), section 41
  • Constitution of Kenya, 2010Articles 47 and 50(1)

Cases cited (1)

  • Kenya Plantation & Agricultural Workers' Union –Versus- Roseto Flowers
    Industrial Cause No. 44 of 2013
Jurisdiction invoked
Jurisdiction of the Industrial Court under the Labour Relations Act, 2007 (section 80(3) vests jurisdiction to determine the legality of a strike in the Industrial Court)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Kenya Plantation And Agricultural Workers’ Union v Carzan Flowers [2013] KEELRC 690 (KLR)", Case Analysis (2013). Cause No 36 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/690/eng@2013-07-26

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.